BURLINGTON, Mass., June 17, 2014 /PRNewswire/ -- Decision Resources Group finds that Colombia has an attractive pharmaceutical market that should appeal to multinational companies looking for emerging growth opportunities. Colombia is experiencing increasing demand for pharmaceutical products as a result of the country's positive economic landscape, booming population and government policies to broaden access to medicines through the expansion in health insurance and affordable drug coverage. Colombia also has a thriving generic sector, as a result of government cost-containment efforts that offers growth potential for both domestic and multinational pharmaceutical companies. The Colombian pharmaceutical market was worth COP (Colombian peso) 8.126 trillion (U.S. $4.35 billion) in 2013 and is expected to grow at a Grow at a Compound Annual Rate (CAGR) of 7.3 percent to reach COP 10.032 trillion (U.S. $5.37 billion) by 2016.
Other key findings from the Market Access Tracker report entitled Colombia Market Access Tracker:
- Expanded access to pharmaceuticals: Recent government policies have successfully expanded access to pharmaceuticals to all strata of the population through increased insurance coverage and an expanded basic drug list from the country's Mandatory Health Plan. Specifically, health insurance coverage has grown to 95 percent of the population, with President Juan Manuel Santos targeting universal coverage by 2015.
- Regulatory and pricing environment: Colombia offers a stable political and economic environment, although the government has tightened the regulatory and pricing environment for pharmaceuticals in recent years.
- Entry point to region: Colombia also has geographic advantages. The country is an entry point into South America for multinational pharmaceutical companies wishing to enter the region.
- Opportunities for international companies: The government does not favor domestic companies in the tendering process or any other form of trade in the country's pharmaceutical sector, creating equal opportunities for international firms operating in the country. Furthermore, the cost of local production is lower than that of most other Latin American countries.
Comments from Decision Resources Group Analyst Chiara Stella Cochetti, MS.C.:
- "Drug pricing regulation has been one of the prominent themes in the new National Pharmaceutical Policy fostered by the Santos administration. This new pricing policy has focused on correcting the poor enforcement of drug pricing controls that previously existed, by enabling the government to take direct control of a more centralized pricing system."
- "The generics market is expected to experience a boost as a result of pharmaceutical cost-containment efforts fostered by the government. Specifically, cost containment regulations are expected to drive up demand for low-cost, unbranded generics."
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